French officials say their country will veto a deal under which Libya is to pay up to $2.7 billion to families of 270 victims killed in a Libyan-planned terror attack - in exchange for the removal of sanctions from Libya. Libya will pay significantly less if the United States does not remove its own sanctions from Libya. The attack in question occurred in 1988, when a Pan Am jet blew up over Lockerbie, Scotland.



France says that it received much less in a similar agreement with Libya regarding a 1989 bombing of a French airliner. In that incident, 170 people died, and received "only" $34.3 million. The Libyans did not admit responsibility for the French airliner attack, however - unlike in the Pan Am bombing. In any event, France, a permanent member of the UN Security Council, can veto a UN resolution to lift sanctions.



Furious U.S. officials said French opposition could undo a decade of negotiations with Libya, according to a USA Today report. "Their behavior is outrageous," said a State Department official who requested anonymity.